CAMEROON: ASSETS, POTENTIALS AND ECONOMIC PROSPECTS

E mmanu el NGANOU D JOUM ESSI M i n i s t e r o f T h e E c o n o m y , P l a n n i n g a n d R e g i o n a l D e v e l o p m e n t L O N D O N , 7 M AY 2 0 1 4

INVESTING IN CAMEROON, THIS IS THE MOMENT

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1. Brief presentation and geographical situation of Cameroon (1/2)

Cameroon, the whole Africa in a single country is situated in the heart of the Gulf of Guinea; it has a surface area of 475,444 square kilometres

• It is bounded in the West by Nigeria, in the North by Chad, in the East by the Central African Republic, in the South by Gabon, Equatorial Guinea and the Republic of Congo; • Cameroon is a market of about 22 million consumers which could be extended to the 300 million consumers of the Economic Community of Central African States, plus Nigeria; the youth (under 15) account for 43% of these consumers while 54% of them are people of working age.

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1. Brief presentation and geographical situation of Cameroon (2/2)

• The country shares a maritime border with the Atlantic Ocean ; • Access to the sub-régional market including Nigeria, Democratic Republic of Congo or Sudan is guaranted.

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2. Cameroon’s economic potentials (1/3)

Cameroon is « the whole Africa in a single country » • Agricultural potential is rich and diversified owing to the variety of climates and soils; • Agricultural production ranges from food crops to cash crops: banana, cotton, cocoa (4th world’s largest producer), coffee, tea, sugar cane, natural rubber, cereals, fruits and vegetables, tubers; • The country is particularly suitable for livestock production (northern parts and North-West region of the country); • Forestry, with one of the largest forest block in the Congo basin.

Forests cover 40 per cent of the national territory;

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2. Cameroon’s economic potentials (2/3)

Cameroon is « the whole Africa in a single country » • Fishing presents very bright prospects with the 360 km of maritime coasts, and the Bakassi peninsula which is renowned for its abundant fish stocks; • A variety of mineral resources yet untapped (iron ore: 550 million tonnes – 4th world’s largest reserve and 2nd in Africa; cobalt and nickel: about 52 million tonnes, etc.); • Oil is a Cameroon’s main mine product, natural gas exists with reserves of more than 116 billion m³; • Cameroon has the second largest hydroelectric potential in Africa (4256 GWH). Several energy projects are underway (Lom Pangar, Memve’ele, Mekin, Kribi) ; many one are under studies.

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2. Cameroon’s economic potentials (3/3)

Cameroon is « the whole Africa in a single country » • A dense road network that stretches over the territory, representing 50,000 km including 4519 km tarred; the larring is continuing ; • Four seaports with two under construction (the first phase oh the Kribi Deep Sea Port is to be completed in June 2014); • • • Four international airports (Yaoundé, Douala, Garoua and Maroua) and régional second-class airports for domestic flights; A dense telecommunication network comprising one landline operator and 3 mobile operators; Various forms of tourism, including (i) beach tourism, (ii) photographic safaris, (iii) cultural tourism, (iv) mountain tourism, (v) ecotourism and (vi) business tourism;

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3. Cameroon’s investment assets (1/6)

Cameroon is endowed with numerous assets of diverse nature: Political Judicial Socio-cultural and Economic

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3. Cameroon’s investment assets (2/6)

Politically: • Cameroon enjoys political stability and social peace which reduce uncertainties and country-risk in the business environment; • A multiparty parliament comprising two houses (the Senate and the National Assembly) with 07 political parties represented in the National Assembly and 06 in the Senate.

As far as Judiciary is concerned: • An independent judicial system; • Legal and judicial security strengthened by its status of member State of the Treaty on the Harmonization of Business Law in Africa (OHADA); • Creation of commercial benches within the Courts of Appeal.

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3. Cameroon’s investment assets (3/6)

• Good governance is monitored by specialized institutions (National Anti-Corruption Commission [CONAC], National Financial Investigation Agency [ANIF], National Governance Programme, Supreme State Audit, Special Criminal Court, Audit Bench, Anti-Corruption Units within ministries) On the Socio-cultural field : • English and French are the two official languages. Many Cameroonians are also well-versed in Spanish, German and Chinese; • Religious tolerance with Christianity, Islam and traditional beliefs representing the main religions

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3. Cameroon’s investment assets (4/6)

In the field of Economy • • • • • The Cameroon Economy key indicators are combined in a brochure at your disposal ; Macro-economic stability backed up by a 5.5 per cent GDP growth and controlled inflation around 3 per cent; A growing middle-class within a working population of 54 per cent and an ever increasing per capita income (1392 USD); A very positive indebtedness (public debt/GDP= 16 per cent); Higher education comprises eight (08) State Universities and private universities which produce skilled and multidisciplinary manpower.

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3. Cameroon’s investment assets (5/6)

• A University Free Zone established in 2008 to bring universities and industries closer; • An attractive framework to secure a return on investments thanks to the enactment of two important laws:  The law of 18 April 2013 to lay down investment incentives (tax and customs incentives, financial and administrative incentives, specific incentives in the form of VAT exemptions) the Minister of Finance will elaborate on ;  The law of 16 December 2013 to regulate economic zones in Cameroon which seeks to promote investment, exports, competitiveness, employment and economic growth.

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3. Cameroon’s investment assets (6/6)

• Introduction of specific measures notably:  Establishment of Centres of Formalities for the Creation of Enterprises in the 10 regions of the country;  Streamlining of procedures pertaining to the creation of enterprises;  Streamlining of land concession procedures;  Establishment of reception counters at airports for investors;  Establishment or restructuring of special committees charged with monitoring investment incentives and economic competitiveness issues.

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4. Investment opportunities (1/2)

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Cameroon offers many opportunities :

Two public procurement methods (public tenders, and public private partnership contracts):  The PPP approach gives any investor the opportunity to engage in the design, funding, construction, maintenance and operation or management of engineering works or public amenities

Numerous projects are either underway or planned in several sectors :

• Roads: Yaounde-Douala highway; Edea-Kribi highway; Edea-Yoyo road; etc.; • Railways, airports and ports: Douala-Limbe railway; Kribi-Lolabe railway; Ngaoundéré-Douala railway; Mbalam-Lolabé railway; Douala new airport, etc.

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4. Investment opportunities (2/2)

(The competent ministers will éelaborate on) • Energy: several hydroelectric projects (Song Dong; Mamfe; Kikot); Bamboutos wind power plant; Kribi-Yaounde power line; pipeline to transport petroleum products, etc.) • Mining (exploitation of bauxite, uranium, diamond, etc.) • Agro-industry, tourism and industrial processing • Water supply schemes (supply of the main cities of Douala and Yaounde with potable water)

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5. Economic prospects (1/2)

Cameroon’s economic prospects are bright

Improved international credibility:

Cameroon’s graduation to the IBRD lending window of the World Bank Group;

Bright growth prospects:

 Commissioning of the Kribi deep sea port, South of Cameroon;  Lifting of energy constraints;  Positive outcomes are expected in the short term owing to the implementation of structural measures taken in 2013 mainly with the aim of improving the business environment and economic competitiveness.

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5. Economic prospects (2/2)

Cameroon’s economic prospects are bright • • •

All efforts are made

industrialisation; to accelerate the improvement of the business climate, modernisation of the production base, access to and availability of production factors, access to funding and

The new dialogue frameworks with the private sector

the business climate; will help accelerate the implementation of measures pertaining to private investment incentives and move forward with the improvement of

Creation of economic zones

in the short term in order to put in place more enticing conditions for foreign direct investments.

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